What is Professional Indemnity Insurance?
Despite all the care agents take overlooking out for their clients, things can sometimes go wrong. It might be a genuine error, such as forgetting to submit some paperwork on time, but the effect it can have on a client can be substantial and open the door to a claim.
Professional Indemnity Insurance offers cover if a third-party claim is made against a business. It helps protect against the legal costs involved in mistakes, oversights, or incorrect advice.
Common reasons agents make PI claims
Gallagher specialises in supporting Propertymark Protected companies across the UK. But what scenarios can result in the need for Professional Indemnity Insurance?
Failure to check properties and not remedying issues
If a property management company fails to inspect a building sufficiently, and, for example, misses a plumbing issue that eventually causes severe water damage to several apartments, the affected tenants may file a negligence claim against the company seeking compensation for their damaged belongings and inconvenience.
The company's Professional Indemnity Insurance can cover the legal defence costs and settlements, helping to protect the company from significant financial loss due to their oversight.
Data/privacy breaches
A data breach can have significant financial and reputational consequences for a business, and professional indemnity insurance can provide financial protection for costs associated with legal defence, compensation claims, and regulatory fines, amongst others.
Underselling of properties
For example, if an estate agent is responsible for valuing and selling a client's property, and, due to an oversight, the agent significantly undervalues the property. This could lead to it being sold for much less than its market value.
The client may file a claim against the agent for financial losses incurred due to the underselling. The agent's Professional Indemnity Insurance can cover the legal costs of defending against the claim and compensation owed to the client, up to the policy limits, thereby helping to protect the agent from substantial financial repercussions.
Negligent misstatement when issuing particulars
If an agent is mistakenly includes incorrect information about a property it could lead to a buyer discovering the discrepancies after purchasing and realising that the property does not meet their expectations or needs based on the initial description.
Feeling misled, the buyer may file a claim against the estate agent for negligent misstatement, seeking compensation for the financial loss and inconvenience caused by the inaccurate information. In this situation, the estate agent’s professional indemnity insurance can cover the legal costs of defending against the claim and compensation awarded to the buyer, up to the policy limits. This insurance offers the agent protection from financial losses resulting from the error in the property particulars, helping to ensure they can continue their business operations without significant financial strain.
Find out more about PI Insurance from Gallagher
Contact the Gallagher team for more information about the Professional Indemnity Insurance provided to Propertymark Protected companies. .
Phone: 0800 138 7536
Email: [email protected]
Why Gallagher?
- Partnered with Propertymark for over 35 years to provide specialist insurance solutions for estate and letting agents, including:
- Professional Indemnity Insurance
- Office Insurance
- Public and Employers’ Liability Insurance
- Directors’ and Officers’ Insurance
- Cyber Insurance
- Trusted by over 100,000 businesses across Gallagher in the UK*.
- Rated ‘Excellent’ on Trustpilot, with over 6,000 reviews*.
- All Propertymark Protected Companies have access to support from a dedicated account manager.
*Correct as at April 2025.
Gallagher Insurance
Gallagher, Propertymark’s official insurance broking partner, has worked with the association for over 25 years to arrange specialist insurance for members.
Arthur J. Gallagher Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 55 Blythswood Street, Glasgow, G2 7AT. Registered in Scotland. Company Number: SC108909.
